Usually, You Are Not Required To Pay A Fee To Get The Credit

Category: Finance.

Consumer debt is at an all- time high.

Whether your debt dilemma is the result of an illness, or overspending, unemployment, it can seem overwhelming. What s more, a record number of consumers, more than 5 million in 2004, are filing for bankruptcy. In your effort to get solvent, be on the alert for advertisements that offer seemingly quick fixes. Consolidate your bills! And read between the lines when faced with ads in newspapers, or even telephone, magazines directories that say: "Consolidate your bills into one monthly payment without borrowing" "STOP credit harassment, repossessions, foreclosures, tax levies and garnishments" "Keep Your Property" "Wipe out your debts! How?

For once, let the law work for you! " While the ads pitch the promise of debt relief, they rarely say relief may be spelled b- a- n- k- r- u- p- t- c- y. By using the protection and assistance provided by federal law. And although bankruptcy is one option to deal with financial problems, it s generally considered the option of last resort. A bankruptcy stays on your credit report for 10 years, and can hinder your ability to get credit, insurance, a job, or even a place to live. The reason: it has a long- term negative impact on your creditworthiness. What s more, it can cost you attorneys fees. These scams often target consumers with bad credit problems or those with no credit.

Advance- Fee Loan Scams. In exchange for an up- front fee, these companies" guarantee" that applicants will get the credit they want- usually a credit card or a personal loan. Resist the temptation to follow up on advance- fee loan guarantees. The up- front fee may be as high as several hundred dollars. They may be illegal. But legitimate creditors never guarantee in advance that you ll get the loan.

Many legitimate creditors offer extensions of credit, such as credit cards, and mortgages through, loans telemarketing, and require an application fee or appraisal fee in advance. Under the federal Telemarketing Sales Rule, a seller or telemarketer who guarantees or represents a high likelihood of your getting a loan or some other extension of credit may not ask for or receive payment until you ve received the loan. Ads for advance- fee loans often appear in the classified ad section of local and national newspapers and magazines. Recognizing an Advance- Fee Loan Scam. They also may appear in mailings, and on local, radio spots cable stations. In addition, these companies often use delivery systems other than the U.

Often, these ads feature" 900" numbers, which result in charges on your phone bill. It s not hard to confuse a legitimate credit offer with an advance- fee loan scam. Postal Service, such as overnight or courier services, to avoid detection and prosecution by postal authorities. An offer for credit from a bank, or mortgage broker, savings and loan generally requires your verbal or written acceptance of the loan or credit offer. Usually, you are not required to pay a fee to get the credit. The offer usually is subject to a check of your credit report after you apply to make sure you meet their credit standards. Hang up on anyone who calls you on the phone and says they can guarantee you will get a loan if you pay in advance.

Protect Yourself. It s against the law. Here are some tips to keep in mind before you respond to ads that promise easy credit, regardless of your credit history: Most legitimate lenders will not" guarantee" that you will get a loan or a credit card before you apply, especially if you have bad credit, or a bankruptcy. You also may have to pay a processing or application fee. It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. Never give your credit card account number, or Social Security, bank account information number out over the telephone unless you are familiar with the company and know why the information is necessary.

Read more...

Retail Swipe Software Fees - Finance Blog:

Setting up an offshore merchant account not only involves paperwork but also certain fees as well.

Student Loans Play A Big Part Of That Financing - Emily Obrian about Finance:

A debt consolidation loan can come in very handy for many consumers but these loans should be examined carefully before signing up for any.

You Knew That It Had To Happen: A 50 Year Fixed Rate Mortgage Loan Would Crop Up Sooner Or Later - Finance Blog:

You knew that it had to happen: a 50 year fixed rate mortgage loan would crop up sooner or later.